Japan Stocks Plunge Again; U.S. Stocks Hold Strong

For the second time in as many weeks, Japan's Nikkei has collapsed. The Nikkei 225 fell 737 points, or 5.15%, overnight to close at 13,589. Last week, the index suffered a more than 7% one-day drop. Since May 22nd, the Nikkei is down an astonishing 13%.

So far, US markets are taking the Japanese sell-off in stride. S&P 500 futures are up 6 points, while Dow futures are up 41 points, which follows yesterday's U.S. sell-off. Despite the main indices holding up, some traders are citing the fact that Russell futures are lower.

Selling pressure in Japan comes amid fears that the rapid surge in stock prices due to 'Abenomics' is simply unsustainable. In the U.S., rising bond yields put the 'great rotation' trade at risk. Also, rising mortgage yields threaten to curb a real, but still fledgling recovery in real estate.

GDP data is expected shortly so anything can happen.

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